Months later, Lorenzo becomes in charge of raising his niece, Sage Alcazar when she moves to town, who is later murdered at the Quartermaine mansion by Mary Bishop. Carly is shot in the head by her husband Sonny, and suffers severe brain damage. She enters a coma, where she experiences a life with Lorenzo as her husband. When Carly comes out of her coma, she has trouble adjusting to her life. She discovers feelings for Lorenzo, putting a strain on her marriage. When Sonny sees her kissing Lorenzo, he leaves her. They eventually reconcile for sake of their children, but later officially divorce. After her divorce from Sonny, Carly later marries Lorenzo. Carly and Lorenzo suffer marital problems because of her close relationship with Sonny, and eventually divorce. Meanwhile, Lorenzo finds out he has a son, Diego Alcazar, by former lover Maria Sanchez. He offers Diego a home, and wants to be a part of his son's life. During this time, Lorenzo and Skye Chandler Quartermaine become involved when Lorenzo realized his love for Carly would never be returned. After they spent one night together, she becomes pregnant. Lorenzo tries to sway his son from a life of crime without success. Lorenzo tries to leave organized crime to keep the dangerous lifestyle away from his family. However, when Jason Morgan gets Diego Alcazar arrested, Lorenzo returns to arms dealing in order to use his connections to protect his son from going to prison. Despite Lorenzo's attempts to protect his son, Diego is apparently killed in 2006 by Sam McCall in a shoot-out between Alcazar's men and Jason Morgan, who was on the run with Sam when Ric and Lorenzo hired Damian Spinelli to frame Sam for a crime she didn't commit. The apparent death of his son left Lorenzo devastated and determined to make sure his new daughter Lila Rae Alcazar would never suffer the same fate as Diego. After the loss of several shipments, Lorenzo goes to Sonny's office attempting to shoot him. Carly walks in, allowing Sonny enough of a distraction to shoot Lorenzo in the head instead. After his brain injury, Lorenzo fakes amnesia to gain an advantage over his enemies. Sonny, aided by Skye, sends Jason to kill Alcazar on May 23, 2007. Jason goes on trial for the murder. Carly enlists Jerry Jacks to go to Venezuela and fabricate evidence that could exonerate Jason. Jerry